Page 79 - How to Make Money in Stocks Trilogy

36
A WINNING SYSTEM
Price
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Dow Jones Ind.
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s 4.5 s o 3.8 e w w m 3.2 r 2.8 Stock t 2.4 tops on to 3/1 split t s / 2.0 3/1 Volume 80,000 50,000 30,000 18,000 Dec 1961 Sep 1961 Jun 1961 Mar 1961 Dec 1960 Sep 1960 Jun 1960 Mar 1960 Dec 1959 © 2009 Investor’s Business Daily, Inc. American
e e o i 3 weeks tight closes 3 weeks tight closes Earnings accelerate— Earnings accelerate— n vertical slash marks show c earning’s report week earning’s report week n Sep 1959
Predecessor to the Predecessor to the Xerox dry copier x Buy Buy k Note: extreme volume e v e dry-up at end of base e dry-up at end of base o u e e s 3/1 Jun 1959 Mar 1959 Dec 1958
American Photocopy Equip.–1958 y Buy k cup- cup 13-week cup p 13- handle ndle hand with-han han with t Big volume increase Big volume increase m Sep 1958 Jun 1958 Mar 1958 Dec 1957
Price = 20*eps Weekly Chart 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11